Vison of Life...It speaks about my views towards what's happening around us, though many of the things represents Pune, a becoming Metro in Maharashtra,India yet most of us live in similar city life. In city day to day life all we face is problems around us; from traffic to water to slums to power supply & many more, but who has solutions? That's why the name
Vison of Life!
Sanjay Deshpande

Sunday, January 8, 2017

Real Estate, City & New Year 2017!

“It’s not the first step but
the direction in which you take it is what decides your fate” … Lao
Tzu.

What wonderful words from the great
Zen Master, to describe the scene on the horizon of real estate to start
another year! And indeed the passing year i.e. 2016 was one that many from real
estate will definitely like to forget it as early as possible; such was the
scene in the industry. Every possible bad thing has happened in 2016 right from
controversies over TDR policy making projects delay to PMC’s inability to get
the new DP sanctioned in time to poor infrastructure making flats non-salable
to ready reckoner rates hike & then demonetization came as last nail in to
the coffin! With due respect to Hon PM’s intentions yet it’s the rumors which
was outcome of demonetization, that property prices will fall further even to
extent of 30 %, which has hit the industry worst. Because most buyers, even
those genuine ones too preferring to wait for the price fall of homes; making
sale of flats come to standstill!

On this back ground while I started writing
this sharing, thankfully the 2017 seems to have some real good news ahead for
e.g. the Pune’s Metro has been finally seen the day light as bjoomipoojan has
been done by the hands of none other than PM himself, so at least to protect
his credibility, the State Govt will peruse the project on priority is we can
hope! Then with demonetization, banks have been flooded with funds & SBI
which is biggest player in home finance as well project finance to real estate
has cut down the interest rates by whooping 0.9% & so are following the
other financial institutes, making home loans cheaper. This will surely help
mid segment where every single rupee counts when EMI is concerned. At the same
time DP i.e. development plan of PMC also has been signed by CM at last, as it
was become more awaited that Janhavi’s baby, (a popular TV serials character’s
delivery news, which has become laughing stock of social media, such was the
way the story has been dragged of that serial). Also projects like ring road
& air-port, which will be having a long term impact on Pune regions
development especially real estate development also has been cleared &
PMRDA’s also moving fast of their DP. Another major aspect of 2017 is it will
be deciding Pune & Pimpmpri Chinchwad’s rulers fate i.e. elections of PMC
& PCMC are due in first quarter of this year so for next five years where
the city development will head, is also equally important for the city’s real
estate. As if BJP wins then Galli to Delhi there will be same ruler, not that
it makes any big difference as it was like that for nearly fifteen years
barring last two but it hardly has made any difference to city’s real estate
& need of homes!

I really wonder what our rulers thinks
of Pune as they want all the advantages they get from the city i.e. right from
revenue by IT industries, numbers of skilled hands which passes out every years
from thousands of education institutes in Pune, millions of jobs which this
city provides through its auto & service industries yet when it comes to
provide simple basic infrastructure, the city is getting poorer by every
passing year on that front!The city needs homes but so
many things right from simple things like getting approval for development plan
like basics keeps on getting delayed for reasons known only to the rulers. Then
there are pending decisions like merging of fringe villages’ as well giving
authority & funding to bodies like PMRDA for essential infrastructure
because of which entire development has got stuck in fringe areas which is only
hope for providing affordable homes. Even the Zillah Parishad which is oldest
public body which is supposedly takes care of civic infrastructure out of PMC
& PCMC limit has been failed repeatedly for doing the same. This has made
lives of millions of citizens living in & around Pune miserable as they
have a home but which don’t have any proper roads, public transport, water
supply, drainage, garbage disposal & the list goes on & on!

Though the DP of PMC has been
cleared by the CM yet again politically sensitive issues like BDP along with
few reservations has been kept on hold, such jokes can happen only in this
State & Country! Means it’s like your total body’s city scan has been done
but the technician will not give you report of few parts of your body & yet
the patient has to be examined by the doctor for diagnosis!How can such jokes the govt system allows, as just it will
affect some election you keep on hold entire policy like bio diversity park
i.e. BDP which is most important for city’s future as well environment! Same is
story with issue of Metro Depot or terminal as earlier on the same location
reservation for making Memorial of Shivaji Maharaj was proposed. Now the govt
is in fix whether to cancel that reservation as that land is important for
Metros aspect but this decision will disturb the caste equations! Actually one
has to have guts when you have power in hand & it’s not some caste of
person but entire city’s future has to be thought! No one says don’t build
memorials but even the Shivaji Maharaj himself while building his forts has
thought of citizen’s convenience on the top of everything, let’s not forget
this! Though the Metro also has been announced by none other than the PM
himself but looking at our past, time lag between the announcement of any
project & coming that project in actual use of the citizens is too much
is a fact! Even the TDR policy along the Metro corridor is in dilemma as there
is no clear stand about whether to give 4.0 times FSI along the Metro corridor
or use some other means to promote the Metro. AT the same time Metro alignment
matter is in Green Tribunal as nearly 1.7 km route is through river bed. I have
seen many cities across the world but nowhere Metro or any such development has
been done through the river bed; yes under the river there are rails &
roads in tunnel form as that doesn’t harm the river bed & biodiversity it
has. It will be interesting that even after PM himself has announced Metro,
what if NGT doesn’t allow the Metro through river bed? Has PMC or Metro Rail
Company kept plan B in hand is the question. Along with Metro the local bus service
also is equally important as Metro completing may take at least six years even
if its completed in specified time & till that time the number of vehicles
will go over six millions & people need to get used to public transport by
then. So PMPML has said to get nearly 1200 new busses at their service, thing
is they need to carve new routes as well & supporting infrastructure like
bus stops, well equipped depot & terminals to park these busses safely.

I think focus of DP hereafter must
be around the pollution threat which looms over the city as in long term that
will be beneficial for the city real estate. Many won’t agree with my statement
but I have repeatedly stated backbone of the real estate in this city is its
cultural, social & natural resources rich status which it provides to the
citizens!From all over the country people want to come to Pune & make
this city their home because there is something in this city which makes them
feel comfortable & fall in love with her! And it’s this emotion or feeling
we have around which we have to plan the DP or develop the city. Now with DP at
least most of it sanctioned second step is more important i.e. to execute it in
time bound way.Imagine if it took 10 years to plan the DP & get it sanctioned,
then how much time we will need to execute it?

New Year as I mentioned above
will decide new rulers also as on all radio FM channels Pune’s Hon Mayor is telling people about various schemes by PMC, most of them we have been listening for
more than ten years by now & few we came to know only via these advertises!
In one of the advertise Hon Mayor tells us about “Project Light House”, under
which PMC will be giving skills training to teen age kids! Which kids? What
criterions for selection? What skills & how many of kids by now has been
trained under this scheme as well what they are doing after they got training?
Many such question which you can get answer only via election polls is what I
feel! This city can’t even have clean public toilets & we talk about
training younger lot of the city, I really get amazed how blind folded we
can be! And suddenly just before election how come Hon Mayor realized that the
citizens should be informed about PMC’s proactivenss regarding the citizens!
Same is announcement of giving two time water supply, but no one speaks about
why it was one time for entire year? I think like the real estate guys, our
rulers also should realize that no more fooling to the common man.

On all these back grounds real
estate industry must have learnt its own lessons by now. As without literally
any infrastructure support whatever growth the industry has seen it has come
from the genuine demand the city has generated. Till now there was a phase
where every day saw new high in property rates but the scene won’t be same ever.
As with demonetization as well sentiments are at lowest level in auto as well
white goods. At the same time buying capacity has been reduced for the common
man due to day to day expenses. No more people are looking for just high end
specifications & plush locations as well the investors are out of market
for a while, though by me that is a good thing! The New Year also saw RERA
implementation intimation by Central & State govts which is like a sword
i.e. it depends how you use it. Clients have become aware about their rights
& law is on their side, so better the real estate also follows fair
practices.Don’t run behind speculation, may you be a builder or a flat
purchaser & look for need than greed! Real estate is hoping that with lower
interest rates & banks swelling with deposited funds, there will be up mood
in buying which I doubt, because just for cheaper loan no fool will buy the
home but there should be right deal in first place!

I listened to one more commercial on the FM channel, it’s a
teaser welcoming New Year & it’s says, “Saal badalnese kuch nahi hoga,
khudko badlo”; means our fate doesn’t change by change of some year on calendar
but it changes only if we change our-self! The real estate should take a lesson
from this commercial as that is what the buyer also expects & I think if it
happens then that’s true Happy New Year for the real estate of the city!